Solution-How much loss from receivable financing should be

How much loss from receivable financing should be recognized

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Reference no: EM133145570

Question - In the course of your review of DANTE Company's "Receivables" account as of December 31, 2019, you found out that the account comprised the following items:

Trade accounts receivable	P3,100,000
Trade accounts receivable, assigned (proceeds from assignment amounted to P1,300,000)	1,500,000
Trade accounts receivable, factored (proceeds from factoring done on a without recourse basis amounted to P500,000)	600,000
12% Trade notes receivable	400,000
20% Trade notes receivable, discounted at 40% upon receipt of the 180-day note on a without recourse basis	600,000
Trade receivables rendered worthless	100,000
Installments receivable (trade), normally due 1 to 2 years	1,200,000
Advance payments for purchase of merchandise	600,000
Customers' accounts reporting credit balances arising from advance payments	200,000
Cash advances to subsidiary	1,600,000
Claim from insurance company	60,000
Subscription receivable due in 60-days	1,200,000
Accrued interest receivable	40,000
Deposit on contract bids	1,000,000
Advances to stockholders (collectible in 2023)	4,000,000

Required - How much loss from receivable financing should be recognized in the income statement for 2019?

Reference no: EM133145570

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How much loss from receivable financing should be recognized : In the course of your review of DANTE Company's "Receivables" account as of December 31, 2019, How much loss from receivable financing should be recognized

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How much loss from receivable financing should be recognized

Reference no: EM133145570

Reference no: EM133145570

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